Coty has announced a four-year restructuring plan that will cut $3 billion

On July 1, Coty Inc. announced its strategic transformation plan. To increase profit margins, reduce leverage and enhance the competitiveness of the group, they plan to write down the group's assets by $3 billion. Over the next four years, Coty said that an agreement had been reached with creditors, with liquidity and credit lines totalling more than $2 billion, to complete the restructuring. After the news was released, Coty's share price plunged 17% to $11.06. Since then, the share price has recovered slightly, closing at $11.59 a share on the day, down 13.5% from the closing price on the previous trading day.

Coty plans to adjust the management structure from the current level to several major departments in Europe, Middle East and Africa, America and Asia-Pacific region according to the region of responsibility, and to be divided into luxury goods department, mass cosmetics department and professional cosmetics department according to different brand positioning. The new high-level organizational structure will come into effect on January 1, 2020, and the headquarters in Amsterdam will operate on July 1, 2020, but the specific time will need to be adjusted according to local regulations. Pierre Laubies, chief executive of

Coty, said he believed Coty could successfully complete the restructuring. The company will simplify its organizational structure, increase investment in core business, and prepare for future business growth. Last November, Gorgeous Chi reported that he had officially joined Coty as CEO.

Coty has been facing the pressure of poor performance in recent years, and the follow-up integration of the brand acquired from P&G is still in progress. In 2015, "gorgeous" reported that Coty bought $three of the 12 billion 500 million major brands of perfume, hair care and cosmetics in Procter & Gamble, a total of 41 cosmetics brands. (See: Coty formally acquired 43 P&G beauty brands for $12.5 billion, ranking the third largest in the world)

European investment giant JAB Holding Co. (hereinafter referred to as "JAB") controlled by the Reimann family in Germany has been a loyal supporter of Coty since 1992. To compete with industry giants L'Oreal and Estee Lauder, they pushed Coty's deal with P&G. Although Coty doubled its size through the deal, Coty's business has stagnated ever since. So far, the P&G business acquired in that year has written down $965 million.